FINANCE & ACCOUNTS:

Cash & Bank management:

In the process of our audit we have found so many irregularities pertaining to

cash management and its utilization.
As we have learnt that as per company rule, the cash here is to be maintained by
Mr. Kiran (Finance) and the utilization of the same is done after getting an
approval and authorized signature in cash voucher from Mr.Shravan (Manager),
but coming to reality we came across so many situations where there are no
vouchers supporting the entries being made in the system though the cash has
been utilized.
Further we have noticed that Mr.Shravan (Manager) himself is authorizing and
making some payments to customers without raising vouchers leading to
discrepancies in accounting for the transactions of the said payments.
We have come across so many cash payments which were made in excess of
Rs.20,000/-, as these expenses are not allowed as deduction as per section
40a(3)a under the income tax act 1961.
As the cash in the organization is maintained by one person that is Mr.Kiran
(Finance), there should be one unified company cash account , but as per
accounting records there are 3 categories of cash maintained i.e., cash, cash at
factory and petty cash. Further pertaining to imprest account Mr.Abraham who
left the organization in the month of april 2014 itself still his imprest account is
showing a balance of Rs.3,28,260.25 Cr.
As per our observation there is no day end cash reconciliation done by the
finance department.
Coming to Bank Payments we observed that there is no process of maintaining
any kind of bank voucher for a particular payment and accordingly respective
payments are recorded in the system through bank statement instead of
concerned vouchers.

Loans and Advances:

With respect to loan account namely ICICI Bank car Loan account, it is showing
a debit balance of Rs.2,49,584 and in this regard we have got an explanation that
Said account has been closed at the initial stage itself , since for the said account
loan statements are not available we are unable to verify the same.
We have observed that for the term loan which is taken from syndicate Bank
entries for repayment have not been found in the system.

Receivables:

As per the system sundry debtors is showing a balance of

Rs.23,14,34,343/-,which still needs to be cleared off. (Annexure in Excel Sheet)

Deposits:

Details with respect to C Form Security Deposit and The Commanding Officer
(BG Army) which were shown as deposits are not yet explained by the
Department.

Vat:

As Per Annexure Prepared in Excel Sheet

Excise

As per Annexure Prepared in Excel Sheet

TDS:

There is an amount of 10,35,089/- TDS deducted which is not remitted to the department till now.

We have noticed that there are so many employees from whose salary TDS is not
being deducted, even though their annual salary is exceeding the Basic
Exemption Limit.

Suspense:

As on 30-06-2015 there are Suspense Transactions of Rs.12,92,768/- which needs to be cleared

off .

PRODUCTION:
Role:
Below teams are presently working in the Shop Floor.
1) For Platform Manfacturing - 4 teams ( 16 members total)
2) for Hydraulics -2 teams ( 8 members total)
3) for Mast Manfacturing - 1 team ( 8 members total)
4) for Gear Boxes Assembly - 1 team ( 3 Members Total)
But The Major Constraint Is Electrical Power (Present 20 Hp)
As of now with available Power only 4 Welding Machines, one lathe & one Drilling machine, because of that 50
-60 % of employees are Idle Due to shortage of Power. If the availability of power is increased to minimum 50
Hp to Maximum -75 Hp, present condition will totally change provided there is no Material Shortage.
As per present condition we deliver 3-4 Machines Per Month,

But if the availability of power Increases as said above 8 Rigs per month is our Target.
Provided all Materials in Time arranged By Purchase Department.
It is to be noted that below Machineries are also required to increase Quality & Quantity.
1. Band Saw Cutting Machine
2. Milling Machine
3. Jig boring Machine
4. Profile Gas Cutting Machine
5. MS Plates Cutting Up To 8mm with Span Length 3mtr -01 no
6. MS Plates Bending up to 8mm with Span 3 mtr-01no
7. EOT Crane 5 ton Capacity
8. Fork Lift
9. Lathe machine 9 Feet

HUMAN RESOURCES DEPT:

Shop floor employees are recruited through reference of presently working

employees or old employees and not directly by the HR Dept.
He looks after the maintenance of employees attendance, leave records, OT
and their salary Part.
He also takes care of Statutory Obligations Concerned to Employees namely
ESI & PF, but we have observed that Payment of ESI & PF have not been
complied with.(refer statutory obligations in excel sheet)

As a whole following are the roles & responsibilities of HR

Attendance update.

2. Leave card posting.

3. Leave report preparation and send.

4. Preparation of Salaries and payment fallow up.

6. On Duty, Permission posting.

7. Maintaining of Advances Register.

8. Update of All Statutory Registers as below,

A. Leave Register.
B. ESI Accident Register.
C. ESI Inspection Register.

9. ESI Card Registration for New Employees.

10. Issuing of All ESI filled forms.

11. Monthly Generate of PF Challans, ESI Challans and pay in Bank.

13. LIC payments for workmen and payment fallow up.

14. Liaising works for HR Department (Going out side official works)

15. Claiming of PF for Exit employees.

16. Monthly Professional Tax returns and fallow up for payment.

17. Intercom AMC, solving problems and payments fallow up.

18. Insurance for all employees and Claiming Process If any injured occurred.

19. Monthly Additions and deletions of Insurance.

20. Maintaining of All Company vehicle RCs , Insurance and other required

21. Renewal of Factory Registrations and submission annual returns.

22. Submitting of Annual Returns at Inspector of Factories.

23. Arrange all Facilities of IMP Visitors like High Commissioners, Customers &

24. Arranging vehicles for Customers pick up and drop at any time and
official

25. Membership Subscriptions and Renewal of CIA.

26. Hotels and Travels Booking (Cars) and payments fallow up.

27. Preparation of Yearly Bonus Statement.

28. Dispatches of Uniforms and shoes.

29. Stationary Maintenance.

30. Monitoring of House Keeping and provide all items for office cleaning.

31. ISO documents preparation for Surveillance Audit and Repeat Audit

32. Giving the order of Visiting cards, Letter Heads, Envelop covers and other
required items for office use.

33. Welfare Facilities like.

A. Drinking Water and Tea payment fallow up
B. Water tank for external use.
C. First Aid Box.
D. Insurance for employees.

34. Vision Security and payment fallow up

35. Maintaining of all formats like Salary Advance, Loans, C-Off, Hospital slips
and other forms.

36. Performance Appraisal for All Employees yearly.

37. Update of Leave cards.

38. Safety Measures.

39. Factory premises cleaning and neatness.

40. Maintaining personal files and update.

41. Preparation of offer letters and appointment letters

42. Joining Formalities, documentation.

43. Sometimes required mandatory items arranging immediately.

44. Property tax paying quart yearly.

45. Tour expenses bills verification and forward to Accounts.

46. Issuing mobile and doing all activities about sim cards, Data cards and
payments fallow up.

47. Partition works done depend upon requirements.

48. Arranging stationary for office.

49. Urgent works in case of Emergency assigned by MGT.